The UK housing market is experiencing its most significant downturn in 14 years, as high mortgage rates and economic uncertainty dampen demand, according to a survey by the Royal Institution of Chartered Surveyors (RICS).
The RICS house price balance, an indicator measuring the difference between surveyors reporting price increases and decreases, fell to -68 in August, its lowest level since 2009.
This is a decline from -55 in July and worse than the -56 predicted by a Reuters poll of economists.
New buyer inquiries dropped two points to -47 in August, while new sale instructions fell nine points to -26.
The survey also revealed the weakest assessment of newly agreed sales since the Covid pandemic began.
Simon Rubinsohn, RICS’s chief economist, stated that the housing market is sluggish with no signs of improvement, largely due to economic uncertainty and high mortgage costs.
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